Asset Manager Job Description, Skills, and Salary
Get to know about the duties, responsibilities, qualifications, and skills requirements of an asset manager. Feel free to use our asset manager job description template to produce your own. We also provide you with information about the salary you can earn as an asset manager.
Who is an Asset Manager?
An asset simply means a resource with economic value owned by individuals, corporations, organizations, or countries with the expectation that it will be beneficial in the future. Depending on the individual or corporation, an asset is arguably one of the most important things to have because they have both long and short-term benefits. All assets are documented and reported on an organization’s balance sheet and are created or bought to improve and enhance a company’s value. An asset can also benefit the enterprise’s operations, activities, and services.
Most assets are acquired because of their potency to generate cash flow, improve sales, and reduce expenses in the future. Regardless of the form of the asset (a patent or manufacturing equipment), they tend to boost the firm’s finances and infrastructure. Some assets are short-term economic resources that are expected to be converted into cash within a year; they are called current assets. In contrast, some assets are long-term resources including buildings, plants, and equipment, and are called fixed assets. Other assets termed financial assets represent investments in the assets and securities of other institutions. Examples include stocks, bonds, and equities. Lastly, there are economic resources that have no physical presence such as patents, copyrights, and trademarks; these are called intangible assets.
To maintain and manage assets, a systematic approach to realize, govern, and generate value from economic resources, properties or assets must be put in place. This process is called asset management. Asset management applies to both intangible and tangible assets. While tangible assets include physical objects including buildings and equipment, intangible assets consist of intellectual property, human capital, financial assets, or goodwill. Asset management involves the systematic method of operating, upgrading, developing, maintaining, and disposal of assets cost-effectively. The concept of asset management is used in different sectors to describe the art of managing investments and optimization of costs, risks, and sustainability on behalf of others. An individual that manages intellectual properties, equipment, and stocks for organizations and others is known as an asset manager. Asset managers are tasked with the monitoring and maximization of the employer or clients’ return on investment. Also, an asset manager ensures the firm’s products or assets improve income and enhance financial stability. Through inventory, asset analysis, and supplier pricing, the asset manager helps the organization maximize profits and minimize losses. In some firms, an asset manager generates reports and passes the information to senior management and executives.
Additionally, an asset manager is responsible for trading, managing, and investing stocks, commodities, precious metals, and real estate on behalf of the enterprise. Often, they advise and enlighten the client about trends in the acquisition and sale of assets. Asset managers are prominent for their ability to negotiate and implement programs and principles to increase the value of assets and revenue. Most asset managers restructure the clients’ assets when necessary to generate more profit and mitigate deterioration. Financial portfolios, fixed-income securities, exchange-traded funds, and machinery are frequently and habitually monitored and overseen based on set goals and targets. Some asset managers are employed by financial institutions, insurance companies, and investment firms to manage assets for their customers. They stay abreast of market trends and guide their client or employers’ investment decisions as well as update financial policies. The most prudent and prosperous asset managers are renowned for working in the best interest of their employers; he/she periodically keep the client informed and handle the assets responsibly. Importantly, most asset managers are in charge of generating budgets for their department; they carry out repairs on damaged properties and assets too. An asset manager creates extensive communication and network with external partners including vendors, suppliers, and contractors.
Furthermore, an asset manager travels often to meet stakeholders, supervise leased properties, and participate in industry-organized workshops. Through extensive research and study, the asset manager determines which transactions to broker and the ones to avoid. Some employers and firms include asset managers in the recruitment team and instruct them to train new and current staff in the unit. In rare cases, the asset manager diversifies the client’s portfolio on local and foreign stock to mitigate the overall risk of economic slumps that may occur in either market. This is aimed at ensuring that the client gains from economic upturns and downturns in both local and foreign markets. An astute asset manager enlightens the client or employer on the inherent risks of investments in general and deviates from giving them false hope. Relatively, asset managers review and provide input to the Pro-forma financial model for fresh assets and ensure requirements for different project agreements are compiled and adhered to. The most sought asset managers use their knowledge of the history of several assets and their worth to make the client understand how they can improve and grow different assets. Therefore, the following are the various types of asset managers;
Financial asset managers: These are individuals that are employed by financial services and institutions to manage investment funds and segregated client accounts. This is achieved by studying the client’s assets, planning and looking after the investments, and providing recommendations on future investments or by allocating assets to mirror a market or sector index.
Physical and infrastructure asset managers: Physical and infrastructure asset managers are hired to monitor and manage the entire life cycle of physical and infrastructural assets. Their duties include designing, commissioning, constructing, repairing, operating, maintaining, replacing, and disposing of such assets.
Enterprise asset managers: They use an asset registry and a computerized maintenance management system to support the management of a company’s assets. Also, they utilize the geographic information system to monitor assets that are geographically distributed, interconnected, or networked.
Public asset managers: Public asset managers incorporate the management of things of value to a municipality or jurisdiction and its citizen expectation.
Intellectual and non-physical asset managers: Intellectual properties and non-physical assets such as books, music, software, and copyrights where the user’s rights are constrained by a licensing agreement are managed by this form of asset manager.
Asset Manager Job Description
Below are the asset manager job description examples you can use to develop your resume or write an asset manager job description for your employee. Employers can also use it to sieve out job seekers when choosing candidates for interviews.
Asset managers are professionals that collect, analyze, safeguard, and handle an organization’s business and financial portfolio. The role of an asset manager involves the following tasks;
- Manage client’s assets based on goals: Every organization, firm, or individual has certain goals and targets to be achieved at a given time. Hence, asset managers handle the clients’ assets to meet any financial or business goal they have.
- Create financial statements and reports: The asset manager prepares statements for the client to help them visualize any improvement and evaluate what financial or business aspect requires change.
- Meet with employers and clients to analyze finances and investments: An asset manager regularly meets with the firm or client to assess and discuss their financial and business needs and risks concerning their assets.
- Develop and handle client portfolios: Every asset manager develops and maintains their clients’ portfolios to keep their assets updated and organized.
- Evaluate economic risks and decide which investment to pursue: They review data and perform statistical analysis to learn about the general state of the economy and specific risks related to each firm’s target market. Also, they analyze financial data and risk probability to decide which investments are best for the organization.
- Maximize profit for the client or employer.
- Liaise and cooperate with suppliers to get the best price for a property.
- Run and analyze inventory for an organization’s assets.
- Use tracking technologies to safeguard assets.
- Monitor materials, workforce, equipment, tools, and supplies.
- Ensure financial, investment, and business records are updated.
- Generate and report on financial and forecasting budgets.
- Monitor asset performance and recommend corrective measures where needed.
- Develop strategies to increase the return on investments and minimize risk factors and losses.
- Research relevant markets and identify current trends and patterns.
- Review policies, procedures, or processes and suggest adjustments.
- Negotiate and liaise with property managers, attorneys, fund directors, and auditors.
- Collaborate with the asset management team and senior executives on best practices.
- Work to develop a master asset management plan specifically attuned to each client.
- Manage cash flow and physical assets such as property and real estate.
- Analyze asset value timeline to forecast for a future estimated value.
- Travel to asset sites as needed to make bids and appraisals.
- Draft lease and asset renewal contracts.
- Foster and maintain positive client relationships.
- Ensure that payments and collateral are maintained appropriately.
- Use business intelligence software to generate reports and identify important data insights.
- Monitor project and fund compliance with regulatory requirements.
Qualifications
No matter what the core business activity of a company is, it would undoubtedly use several assets to achieve its goals. There are various qualifications that aspiring asset managers must meet to be hired. These qualifications cut across all sectors including specialized industries. Most hiring managers pay credence to and emphasize education, experience, and proficiency amongst others when recruiting asset managers. A breakdown of the relevant qualification for an asset manager includes;
Education and training requirement: A bachelor’s degree in real estate, finance, public administration, or business administration is highly desired by most employers. However, a master’s degree in the aforementioned field puts the candidate above other competitors. Recruitment managers believe advanced or postgraduate studies imbibe relevant skills and advanced knowledge on an individual. Most firms offer training to the successful candidate anchored by an experienced or senior asset manager or professional. Similarly, individuals with master’s degrees have an in-depth understanding of contract management and property finances. In addition, an undergraduate degree in construction, statistics, management, and accounting is accepted by some organizations. Preferably, employers seek candidates who have developed their skills through graduate trainee programs and junior asset manager roles. Ideally, the graduate trainee program should include how to conduct a risk assessment, how to operate mechanical systems, and how to navigate different accounting principles.
Work experience is essential to gaining employment within the asset management profession. Companies and enterprises are always pleased to see work experiences listed on the applicants’ curriculum vitae. Thus, a minimum of 2 years of successful experience in asset management can suffice.
Proficiency: The asset manager must have the ability to work in high-pressure situations and environments; due to the nature of the profession, they must be proficient in using business and data intelligence software. The perfect candidate should be able to handle multiple clients’ assets at a time. Computer literacy and astute negotiation prowess are desired.
Essential skills
Asset managers are highly experienced and skilled professionals with a deep understanding of their specific asset classes. Rather than being a generalist, an asset manager would be better off specializing in a particular niche to be more productive.
Financial modeling skills: Demand is increasing for asset managers who have a good understanding of financial modeling. Hence, asset managers must muster and develop financial modeling skills to stand out. The better you are at modeling, the more roles will be available for you.
Asset valuation skills: The process of asset valuation is an art, formula-driven, and technical. Asset managers would need to look at all data, analyze historic trends, and make sensible predictions about future events to gauge the viability of an asset. Therefore, an asset manager must develop and hone asset valuation skills to succeed in the profession.
Ability to increase income streams: Employers are looking for candidates that are capable of undertaking rent reviews and negotiating better deals that will add value to the assets. The ability to formulate and implement strategies that will add value to assets under management and make the best use of the capital expenditure budget is paramount in asset management.
People management skills: An asset manager tends to work with third-party vendors and must be willing to work cost-effectively. Being able to tactfully and diplomatically manage vendors and other people is invaluable and doting to employers and organizations. People management skills are necessary during the negotiation of contracts as well.
Reasoned decision-making: An asset manager should have the experience of carrying out feasibility studies and producing reports. They also need to make recommendations on disposal, acquisition, or refurbishment of assets. These and other functions require excellent decision-making skills.
How to Become an Asset Manager
There are various routes to becoming an asset manager; you can gain the qualifications, skills, and requirements through education and training. Here are a few steps to take to become an asset manager;
- Earn a bachelor’s and/or master’s degree in business administration, finance, economics, and other related subjects.
- Seek an internship and connect with mentors and professionals in asset management.
- Get certification such as chartered financial analyst or chartered alternative investment analyst.
- Seek experience and related skills by applying for junior asset managers’ roles.
- Apply for asset manager positions.
Where to Work?
According to research, the largest employers of asset managers are real estate firms, civil organizations, social entities, and insurance companies. An asset manager can also work for a construction firm, a bank, or an investment company supporting businesses or individuals. Other asset managers are employed by property management firms and stockbroking enterprises.
Asset Manager Salary Scale
A breakdown of salaries collected from multiple industries and employers show the average salary of asset managers in the United Kingdom to be;
£19,000-£21,000 annually for entry-level asset managers.
£38,000-£40,000 yearly for trained and experienced asset managers.
£40,000-£50,000 per year for senior asset managers.
Furthermore, an asset manager in the United States earns an estimated average salary of $76,367 per annum
